Investing business proceeds in mutual fund

[samuraijack]

Hey yall,

So i sold my business last year. I want to invest a part of it (maybe around $500k) in something that I don't have to actively manage.

A friend told me about VTSAX.

What are your opinions on this vs individual dividend stocks (as detailed in the last chapter of Unscripted )?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Martzee]

Hey yall,

So i sold my business last year. I want to invest a part of it (maybe around $500k) in something that I don't have to actively manage.

A friend told me about VTSAX.

What are your opinions on this vs individual dividend stocks (as detailed in the last chapter of Unscripted )?

Mutual funds are expensive and most of the time underperform the market. If you want something that performs as the market does, follow Warren Buffett's advice: "Buy an entire market using the index ETF, such as SPY, and forget about it." Over time, the market goes up. If you bought before the 2008 crisis, you would be up from $1,600 to $4,500, a 181% up. If you bought it in 2008 at the bottom, it would be even better of course.

 

[samuraijack]

Mutual funds are expensive and most of the time underperform the market. If you want something that performs as the market does, follow Warren Buffett's advice: "Buy an entire market using the index ETF, such as SPY, and forget about it." Over time, the market goes up. If you bought before the 2008 crisis, you would be up from $1,600 to $4,500, a 181% up. If you bought it in 2008 at the bottom, it would be even better of course.

Yeah i came across that, but doesn't VTSAX track the market?

 

[Martzee]

Yeah i came across that, but doesn't VTSAX track the market?

I checked it out and it looks OK. If you plan on holding it through any market situation, it is doable.
I am generally against mutual funds but this fund looks workable.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Kak]

Why not just pick a few ETFs and let it ride for a while?

Mutual funds and money managers are outdated and too spread out for meaningful gains.

You have to take some kind of position that’s ahead of the curve if you want to make money in the markets.

 

[Kevin88660]

Hey yall,

So i sold my business last year. I want to invest a part of it (maybe around $500k) in something that I don't have to actively manage.

A friend told me about VTSAX.

What are your opinions on this vs individual dividend stocks (as detailed in the last chapter of Unscripted )?

Not sure about the exact product but Vanguard in general has a good reputation in low cost.

Time to learn to read the prospectus. How good they have done the job of tracking/ outperforming the market? Expense ratio?

What about geographical diversification?

 

[samuraijack]

Why not just pick a few ETFs and let it ride for a while?

Mutual funds and money managers are outdated and too spread out for meaningful gains.

You have to take some kind of position that’s ahead of the curve if you want to make money in the markets.

My understanding is that VTSAX is an index mutual fund that tracks the total market and is passively managed, they have a ETF version of it called VTI. Its something to put money in that is better than my savings account.

I don't want to beat the market with that, just having minimum 5% returns annually would serve its purpose.

My plan is to have another money pot for growth positions where I pick certain stocks/ETFs and trade options on those.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.